Feature Films, Consumer Products Lift Disney Q3

BURBANK: On the back of strong gains at its studio entertainment and consumer-products division, The Walt Disney Company reported third-quarter revenues that were 8 percent higher at $12.5 billion and a net profit that was up by 22 percent to $2.2 billion.

“Our strategy of building strong brands and franchises continues to create great value across our company,” said Robert A. Iger, the chairman and CEO of The Walt Disney Company. “This quarter we delivered the highest EPS in the company’s history, and we’ve now generated greater EPS in the first three quarters of FY 2014 than we have in any previous full fiscal year. We’re extremely pleased with these results and we are also thrilled with the spectacular performance of Guardians of the Galaxy, which holds great promise as a new franchise for our company and once again reinforces the tremendous value of Marvel.”

Disney's biggest revenue generator, the media networks segment, had quarterly revenues of $5.5 billion, up 3 percent on the year-ago period, and operating income that was flat at $2.3 billion. At the cable networks, revenues were stable at $4 billion, but operating income dropped 7 percent to $1.9 billion, largely as a result of higher programming and production costs at ESPN. Broadcasting revenues rose 7 percent to $1.6 billion, with operating income up 66 percent to $354 million.

Studio entertainment revenues hit $1.8 billion, rising 14 percent, delivering an operating income that more than doubled to $411 million, thanks to gains from Frozen, Captain America 2: The Winter Soldier and Maleficent.

Consumer products revenues, boosted by merchandise from Frozen, Disney Channel properties, Spider-Man and other brands, rose 16 percent to $902 million, while operating income increased by 25 percent to $273 million.

Parks and resorts generated revenues of $4 billion, an 8-percent gain, and operating income of $848 million, 23 percent higher than this time last year. Interactive revenues were $266 million and the segment delivered a profit of $29 million.